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Form 8971: Consistent Basis Reporting For Inherited Property

Per recent changes in the law, Executors may have additional reporting obligations. Executors may now be required to report the basis of estate assets to the IRS and the beneficiaries of the estate by filing the Form 8971. Executors will need to complete and file the Form 8971 for estates that are required to file an estate tax return after July 31, 2015. Estate tax returns are generally only required when the estate value is more than $5,430,000 in 2015 and $5,450,000 in 2016. (Currently it is unclear whether the Form 8971 will be required for estates filing an estate tax return only to elect “portability”, although it does not appear the Form 8971 will be required in those cases.)

Although the IRS has delayed the first deadline for filing the Form 8971, the current deadline is March 31, 2016.

For additional information or if you need assistance in preparing the Form 8971, feel free to contact the attorneys at JEFFREY BURR.

-Attorney Michael D. Lum